Cash Book Test - 4

IASC Was come into force on 29june 1973.It was responsible for developing accounting standard and Uses and application of these standards.

ICAI had constituted ASB on 21April ,1977. 

On the Cash basis of accounting, transaction are recorded only when they are paid or received in cash , credit transaction are ignored. As per matching Concept , Transaction are recorded in the period to which they actually belongs. Hence, Cash basis of accounting ignoreds matching principle.

True. Because In cash basis of accounting only cash receipt and cash exp. are recorded so a layman can also use this basis. Hence no need to have technical skill or knowledge.

Yes on the cash basis of accounting revenue and capital item can not be differentiated.

Source documents are original records containing details of the transaction on basis of which entries are to be recorded in accounts. Like Payin slip, Cash memo ,invoice etc. Hence account is not a Source document.

There are Many types of Vouchers But there is not electronic goods voucher. Hence. Electronic good is not a voucher. Cash voucher records cash transaction And  credit voucher records credit transaction etc. 

Nominal Rule says Debit all the expenses and losses , Credit all the income and gains.

Voucher is a document which confirms a good purchase or service rendered into business. It is a evidence and legal document which can be used in court .

The basic accounting Equation is, 

Assets = Capital + Liabilities 

Hence, The given equation in this option is not correct.